CAR CATALYST OF THE WEEK & TIP OF THE WEEK

Margins in Auto Catalyst Trading In today’s world there are no big secrets. It is easy to have updated data, prices, interest rates, lease rates, lab results, etc. This situation increases competition and reduces margins. In addition, regulation became burdensome, and price fluctuations constitute high risk in a low margin setting. All these force us to adapt to work in large volumes at a quick pace, while also properly managing the money and minimizing the risks. When working with low margins, we must pay attention to: – Interest (that is currently increasing) – Expenses which are related to metals lease prices (especially in transactions where there is advanced payment and immediate payment). The scheme below describes the ecosystem price structure of the recycling of catalytic converters. It is important to emphasize that both the processors and the refiners usually buy goods only after turning them into powder (as well as conducting laboratory tests), and therefore are less exposed to mistakes and fraud. On the other hand the “collectors” must look for extra margin, as they are exposed to risks.